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Tandem secures £20 million capital raise

Tandem secures £20 million capital raise

UK challenger bank Tandem has secured a £20 million capital raise from Quilam Capital after turning in its first full year of underlying profit last month.

The capital raise concluded in late June 2023, following a process supported by financial services advisor Alantra.

Earlier in the month the bank booked a 128% uplift in retail deposits from £771m to £1.75bn across over 60,000 customers and reported 381% revenue growth.

All told, Tandem generated over £71m worth of income, resulting in a £4.5m underlying operating profit and statutory loss before tax of £12.4 million.

Commenting on the transaction, Alex Mollart, chief executive officer of Tandem Bank, says: “This investment marks another significant milestone for Tandem as we enter yet another exciting stage in our journey."

Tandem has repositioned itself as a green alternative to traditional mainstream banks, offering customers loans, savings and mortgage products under the epitaph 'Banking for a Greener Future'.

Says Mollart: “Following a transformational 2022, this capital will put extra momentum behind our green lending proposition and allows us to capitalise on a number of exciting opportunities to further grow our business."

The bank last year broke through £500m in green lending and reported £238m of green home improvement loans. Fully 68% of all loans originated from within the sustainable policy framework. The strategy has been backed by a tree planting campaign which saw 35K trees planted in 2022.

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